$200k+ yacht hidden from creditors before bankruptcy, Beau James Vernon of Vernon Constructions

A Bushland Beach man has been hauled into court over a yacht he gave to his mother. It’s been a major ‘fall from grace’ for the bankrupt businessman.

Vernon sold the yacht in 2017 for $170,000 while he was still bankrupt, instructing the money to paid to accounts belonging to his accountant and girlfriend.

Bushland Beach man Beau James Vernon, 42, was forced to relive his poor choices around a $233,000 yacht in Townsville District Court on Monday.

The former Vernon Construction owner was declared bankrupt in 2016 and his assets were seized by creditors.

But what didn’t go “into the pot”, according to Justice Deborah Richards, was a yacht capable of paying off 80 per cent of Vernon’s debts.

“In 2015 you transferred the yacht into your mother’s name but you essentially owned it still,” Justice Richards said.

“It was insured in your name, you bought parts for it, and that was how you came undone because that was traceable.”

Beau James Vernon in 2014, leaving court after pleading guilty to common assault. He was on a suspended sentence for this common assault when he committed grevious bodily harm on a co-owner of the yacht.

In 2017 - while still bankrupt - Vernon attempted to sell the yacht and struck a deal for a $170,000 sale with his sister as a go-between.

The money was slipped into the bank accounts of Vernon’s accountant and girlfriend in an attempt to obscure their origin.

In 2018, the yacht’s ownership was officially transferred, triggering the offence of disposing of property with intent to defraud creditors after bankruptcy.

Vernon plead guilty to the charge.

Defence lawyer Claire Grant said Vernon has suffered a humbling “fall from grace”, from being a young businessman with 50-odd employees, to a sole-trader in civil construction earning $70,000 a year with a $480,000 mortgage to service.

The court heard Vernon went into a spiral of poor behaviour after his fiance ran off with his best friend several years ago, launching him into a “grand a day” meth habit and ultimately leading to personal bankruptcy.

Defence lawyer Claire Grant pointed out that Vernon had been following the advice of insolvency consultant Craig Stephen Bax during the bankruptcy - a man who was struck off the roll of solicitors in 1998 for ‘professional misconduct’.

Justice Richards described Mr Bax as “acting in a discreditable way” when giving Vernon advice.

“You were told you didn’t have to declare the yacht because it was tied up in a trust,” she said.

“But you were well aware that you owned the yacht and were using the yacht. You turned a blind eye.”

Money from the yacht sale went towards paying Vernon’s outstanding legal fees for a grievous bodily harm case.

The court heard Vernon had gotten into a fight with the man he’d purchased the yacht with - a family member of Vernon’s ex-fiance - throwing him to the ground and kicking him twice in the head.

He served 12 months in prison for the offence, and was released in 2019.

Justice Richards said normally she would not hesitate to imprison Vernon for at least three months, but considering Vernon’s good behaviour since leaving prison in 2019, and the fact he is the sole provider for his aged mother, she opted for a lighter sentence.

“I’ve come to the conclusion it would serve no one to put you back into custody for a short period of time,” Justice Richards said.

Vernon was sentenced to 18 months imprisonment, released on parole immediately, and subjected to a four year good behaviour period.

Originally published as $200k+ yacht hidden from creditors before bankruptcy, Beau James Vernon of Vernon Constructions